Morgan Stanley's Global Cross-Asset Strategy Team led by Greg
Peters is also worried about a Greek exit from the euro.
They're also concerned about Spain, which is getting worse and is
also much bigger than Greece.

From their latest note to clients:

Stress has returned to Europe, but the stakes are
higher. Spain (let alone Italy) is not Greece: its
economic size, the cost of a rescue, and the increased market
skepticism about temporary fixes suggest that the policy response
needs to include some of the political and institutional reforms
that prior crises have not changed.

Conditions will likely worsen in the near term.
Rating agencies have put investors on notice about further
potential downgrades (not just to sovereigns, but also the
European Financial Stability Facility, EFSF); Spain is struggling
to maintain access to markets; and the price action is becoming
disorderly. Our colleagues in Europe are not convinced that
support from the EFSF (or the European Stability Mechanism, ESM)
would be effective. Ending the cycle of crises requires concrete
steps to fiscal union and the ECB to act as a sovereign backstop,
as the Fed does for the US Treasury. These may come, but the
crisis might have to intensify first. Aggressive ECB action, were
it to come, could spark a material rally. If it does not come,
then we may be nearing a messy Eurozone divorce scenario.

The EFSF and ESM are bailout funds from which debt-laden
countries like Spain are expected to borrow cheaply.
However, should these funds get downgraded, the cost of those
bailout funds would likely go up.